The logistics industry in India is one of the most crucial contributors to the country’s economy. With a market size of over $160 billion in 2020 and a growth rate of around 10%, it’s evident that logistics and transportation are essential for any business operating in India. However, the sector faces numerous challenges, such as inadequate infrastructure, complex regulations, and fragmented supply chains. These factors have made it difficult for businesses to optimize their supply chain management processes, which, in turn, affects their bottom line. However, the adoption of transportation management systems (TMS) software has been steadily increasing in recent years, with businesses recognizing the benefits of implementing a robust TMS system.
In this blog, we will discuss the role of TMS software in optimizing supply chain management in India. We will provide an overview of the logistics industry in India, define TMS software, and explain its benefits for businesses operating in the country. We will also provide real-world examples of companies in India that have successfully implemented TMS software and discuss best practices for businesses looking to integrate TMS software into their supply chain management processes.
Overview of the Indian Logistics Landscape
The logistics industry in India is vast, with various modes of transport, including road, rail, air, and sea. The industry is highly fragmented, with over 12 million unorganized trucking companies operating in the country. This fragmentation leads to numerous inefficiencies and complexities, making it challenging for businesses to optimize their supply chain management processes. In addition, the logistics industry faces numerous challenges, such as inadequate infrastructure, complex regulations, and limited technology adoption.
However, despite these challenges, the logistics industry in India continues to grow at an impressive rate, with a projected CAGR of around 10% over the next few years. The government has also recognized the importance of the logistics industry and has taken numerous steps to improve the country’s logistics infrastructure. For instance, the government has implemented the Goods and Services Tax (GST), which has simplified the tax system for businesses, reducing logistics costs and streamlining the supply chain.
What is Transportation Management Systems (TMS) Software?
TMS software is a platform that businesses can use to manage their transportation and logistics operations. TMS software helps businesses plan, execute, and optimize the movement of goods throughout the supply chain. TMS software provides businesses with real-time visibility into their transportation operations, allowing them to track shipments, monitor carrier performance, and identify inefficiencies in the supply chain.
TMS software also enables businesses to automate their transportation operations, reducing the need for manual intervention and increasing operational efficiency. For instance, businesses can use TMS software to automate carrier selection, reducing transportation costs and improving delivery times. TMS software also provides businesses with data analytics capabilities, allowing them to identify trends, make informed decisions, and optimize their supply chain management processes.
Benefits of TMS Software for Supply Chain Management in India
There are numerous benefits to using TMS software for supply chain management in India. Here are a few examples:
Reducing transportation costs
TMS software enables businesses to automate carrier selection, reducing transportation costs by up to 30%. TMS software also helps businesses optimize their transportation routes, reducing fuel consumption and improving delivery times.
Improving delivery times
TMS software provides businesses with real-time visibility into their transportation operations, allowing them to track shipments and identify any delays. This visibility enables businesses to take proactive measures to address any issues and improve delivery times.
Enhancing customer satisfaction
TMS software enables businesses to provide their customers with accurate and up-to-date information on their shipments, improving customer satisfaction and loyalty.
Better inventory management
TMS software provides businesses with real-time visibility into their inventory levels For businesses in India that are considering implementing TMS software, there are several factors to consider. Here are some best practices for implementation and integration:
Identify your business needs
Before selecting a TMS software, identify your business requirements. Understand your transportation operations, including the volume of shipments, routes, and modes of transport. This will help you to choose the right TMS software that meets your specific needs.
Evaluate TMS software vendors
Conduct research and evaluate multiple TMS software vendors. Compare their features, functionality, pricing, and customer support. Look for a vendor that has experience working in India and understands the local transportation landscape.
Choose a scalable solution
Select a TMS software that can scale up or down based on your business requirements. This will ensure that the software can accommodate changes in your transportation operations.
Ensure integration with existing systems
Ensure that the TMS software can integrate with your existing systems, such as Enterprise Resource Planning (ERP) and Warehouse Management System (WMS). The integration will provide end-to-end visibility of the supply chain and streamline operations.
Provide adequate training and support
Ensure that your employees are adequately trained to use the TMS software. Provide ongoing support to ensure that the software is being used effectively.
Conclusion
In conclusion, Transportation Management Systems (TMS) software has emerged as a solution to optimize logistics and transportation management system in India. TMS software provides end-to-end visibility of the supply chain, streamlines transportation processes, reduces costs, and improves delivery times. Real-world case studies have shown that businesses in India that have implemented TMS software have realized significant benefits.
Businesses in India that are considering implementing TMS software should consider factors such as their business needs, vendor evaluation, scalability, integration, and adequate training and support. Implementing TMS software can provide businesses with a competitive edge in the market.
In conclusion, it is clear that TMS software has become an essential tool for businesses in India to optimize their supply chain management processes. By implementing TMS software, businesses can achieve better visibility, streamline operations, and reduce costs, ultimately leading to improved customer satisfaction and a competitive edge in the market.
Selecting the finest and most economical mode, carrier, and lane options has become increasingly difficult as a result of factors like fuel surcharges, a driver scarcity, and capacity restrictions.
The good news is that technology providers have kept up with and occasionally even surpassed larger transportation trends, and they now provide transportation management systems (TMS) that assist shippers in more effectively managing this crucial supply chain component.